What is Canadian land tax?
How is land tax calculated?
How many times a year do you pay local tax?
Why is my property tax so much higher this year than in previous years?
When you feel that this year’s local tax calculation is unreasonable, how do you request reassessment and appeal?
How to pay local tax? What are the consequences if I submit my application late?
How to check my local tax information?
What are the differences between commercial property tax and residential property tax?
1. What is Canadian local tax
Land tax is a tax that you need to pay to the government every year after you purchase a Canadian property. The amount of land tax is set by the government and must be paid by the owner. If it is not paid overdue, there will be high penalties and interest. It is a mandatory tax that must be paid regardless of the type of house or the area it is located in.
2. How to calculate local tax? What are the factors that affect the amount of tax paid?
Local tax consists of three parts: Municipal tax, education tax and other tax. (Municipal tax, education tax and district tax)
The factors that affect the amount of local tax are the assessed value of the property and the area where the property is located that year. municipal tax rate, education tax, other tax rates.
Property appraisal values are the responsibility of government departments. The tax rate is set by the municipal government where the property is located based on the government's financial situation and the type of house. In most regions, the area with the highest average property tax is King City in York Region, and the cities with lower tax rates are downtown Toronto, Markham, Milton, Richmond Hill or Vaughan.
3. How many times a year do you pay local tax?
The total amount of land tax to be paid each year is determined by the government, but it can be paid twice, six or eleven times a year according to the owner's requirements.
Two times, six times or 11 times
4. Why is my property tax this year much higher than in previous years?
The increase in local taxes is mainly due to an increase in the tax rate or an increase in the assessed price of the house. The tax rate is uniformly determined by the local government and will basically not change. However, due to the rapid increase in local taxes caused by unreasonable property assessment prices, owners are still required to reassess by chance and the government.
5. When you feel that this year’s local tax calculation is unreasonable, how do you request reassessment and appeal?
Local taxes are the responsibility of the government agency MPAC. If the owner is not satisfied with the assessment made by MPAC, the owner can request a reassessment before March 31 of each year. If the assessment result is still not satisfactory to you, you can appeal within 90 days after receiving the assessment decision. There is no charge for a reassessment, or a $75 CAD fee for appeal.
6. How to pay local tax? What are the consequences if I submit my application late?
Generally speaking, payment of local tax can take the following three forms:
1) Mail the check to the tax bureau at the following mailing address:
Treasurer, City of Toronto
Box 5000
Toronto, ON M2N 5V1
2) Pay directly through online banking;
3) Or apply to have the tax bureau withdraw funds directly from your bank account.
Late tax is a mandatory property tax. Late payment of land tax will result in interest and penalties. Generally speaking, the penalty for late payment of property tax is 1.25% of the property tax amount, and the late payment interest is 1.25% per month.
7. How to check my local tax information?
Generally speaking, local tax information can be found on the municipal government website. Take Toronto for example, here is their link:
As long as the owner knows his account number and Roll number, he can check the local tax amount and payment status at any time.
8. What are the differences between commercial property tax and residential property tax?
The tax rates for different types of properties vary greatly. Take the Toronto local tax calculation as an example. Here is a table for 2020
